Intricacies of Designated Zone in UAE and it's VAT and Customs Obligations. Buy Now!!

Import of goods from ROW to mainland and transfer to DFZ Branch and Again re-import from DFZ to Mainland

Here is an understanding required, if goods imported from ROW to mainland and after a period of time, goods shifted to branch of mainland company  in Designated Free Zone. 

Again the same goods re-imported from Designated Free Zone Branch to mainland company and sold to local customers.

Here VAT on import applies 2 times on same goods, first ROW and second import from DFZ. We need to declare 2 times and apply RCM? 

Please advice.


SAJITH NAIR13/04/2020 17:54:18

That would be the ideal option ie to report RCM for each of the cases. It is unavoidable since the the Customs/VAT mechanism is set up that way and the imports will get populated in the VAT return. The Designated Zone guide address such scenarios where movement of goods takes place with a Tax Group or between Branch/HO where one of the entity is situated in a DZ. Perhaps one can enquire possibility of using temporary declarations with Customs which would then not result in such movements (between Mainland-DZ-Mainland) getting reported in the VAT return.

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